2500-2660: Division of Property
When a marriage or domestic partnership ends, dividing property fairly is one of the most complex and contested parts of the process. Division 7 of the California Family Code provides the framework courts use to determine how to split assets and debts between spouses. These rules apply to community property, quasi-community property, separate assets held in joint title, retirement accounts, and even out-of-state real estate. The goal is to ensure an equitable outcome that reflects both the law and the circumstances of each case.
2500–2502: Definitions
Before anything can be split, you’ve got to define what’s what. This part covers the legal definitions used throughout the division.
- Community property is what you and your spouse earned or acquired together during the marriage.
- Separate property is what you had before marriage, inherited, or received as a gift.
- Quasi-community property is property acquired while living in another state that would’ve been community property had you acquired it in California.
2550–2556: Basic Rules for Dividing Property
These statutes establish the basic rule that community property should be divided equally unless the parties agree otherwise in writing or orally in court.
Here’s the bottom line:
- Everything in the community estate must be split equally unless you both agree to a different arrangement.
- If one spouse took community assets without telling the other, the court can award extra property to make it fair.
- The court uses the value of property close to the time of trial, not the date of separation.
- If something was missed in the divorce judgment (like a forgotten retirement account), either party can go back to court to divide it later.
2580–2581: Property Held in Both Names
This section addresses property acquired during the marriage that is held in both parties’ names. Unless there is clear documentary evidence or a written agreement to the contrary, such property is presumed to be community property, regardless of how it’s titled. The purpose is to bring consistency to how jointly held property is treated. This applies to joint tenancy, tenancy in common, or anything else that puts both names on the title.
2600–2605: Special Situations in Property Division
This part gives courts flexibility to handle unusual circumstances. The court may award specific assets to one spouse to achieve an overall equal division or assign assets differently in cases involving deliberate financial misconduct. It also covers how personal injury awards are treated and allows for unique provisions such as assigning ownership or responsibility for a household pet.
Examples:
- One spouse can get the house while the other gets more cash assets.
- If one spouse deliberately spent or hid money, the court can adjust for that.
- Injury settlements generally go to the injured spouse, unless fairness requires otherwise.
- Pets get their own section. The court can assign sole or joint ownership based on who has been caring for the animal.
2610–2611: Dividing Retirement Benefits
These provisions ensure that retirement benefits are divided fairly and in accordance with community property principles. Courts can issue orders for the division of public or private retirement plans, including survivor benefits. However, courts cannot order early payouts or increased benefits unless the plan itself permits it. Orders from tribal courts regarding retirement rights are recognized if properly filed.
- The court can order the plan to pay each spouse directly.
- You might need a special court order called a QDRO to split some retirement plans.
- Tribal court orders about retirement benefits are honored if filed properly in California.
2620–2628: Who Pays Which Debts?
Debts are addressed based on when and why they were incurred. Pre-marriage debts stay with the spouse who incurred them. Debts from during the marriage are generally shared unless the court finds a reason to divide them unequally. After separation, each spouse is usually responsible for their own new debts unless they relate to basic support or child care. The law also includes specific rules for handling educational loans, separate debts, and joint tax liabilities.
- Pre-marriage debts stay with the person who incurred them.
- Debts during the marriage are usually shared, but not always.
- Post-separation debts depend on whether they were for basic needs (like rent or groceries) or personal wants.
- Student loans are treated differently. The person who went to school usually pays for their own loan, unless it would be unfair.
- Courts can also revise joint state income tax debts.
2640–2641: Reimbursement for Contributions
When one spouse uses separate funds to contribute to community property or the other spouse’s separate property, they may be entitled to reimbursement, provided they can trace the source of the funds. Reimbursement is also available when community funds are used to pay for education or training that significantly increases one spouse’s earning potential, subject to limits and exceptions. These reimbursements usually don’t include interest and can’t be more than the current value of the asset.
2650: Jointly Held Separate Property
If spouses hold separate property together as joint tenants or tenants in common, courts can divide those interests during the dissolution process if requested by either party. These divisions follow the same process used for community property.
2660: Real Property Located in Another State
When the community estate includes out-of-state real estate, courts try to divide the property without altering its legal title. If that’s not possible, the court may order actions like signing documents or awarding one party the value of the property interest to ensure a fair division.
Final Thoughts
Division 7 gives courts the legal structure to sort out what belongs to whom when a marriage ends. From real estate to retirement accounts to reimbursement claims, this division aims to balance fairness, practicality, and the unique facts of each case. Whether by equal division, specific allocation, or judicial discretion, the law provides tools to resolve even the most complex property disputes.